Roku (NASDAQ:ROKU) Shares Down 5.6% After Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s share price traded down 5.6% during mid-day trading on Thursday following insider selling activity. The company traded as low as $97.79 and last traded at $100.01. 3,048,944 shares were traded during mid-day trading, a decline of 20% from the average session volume of 3,810,443 shares. The stock had previously closed at $105.92.

Specifically, CEO Anthony J. Wood sold 50,000 shares of Roku stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $103.86, for a total transaction of $5,193,000.00. The sale was disclosed in a document filed with the SEC, which is available through the SEC website.

Wall Street Analyst Weigh In

ROKU has been the topic of a number of recent research reports. KeyCorp reissued an “overweight” rating and set a $116.00 price target on shares of Roku in a research note on Tuesday, October 28th. Wedbush reiterated an “outperform” rating and set a $110.00 price target on shares of Roku in a report on Monday, October 27th. Pivotal Research increased their price objective on Roku from $120.00 to $135.00 and gave the company a “buy” rating in a report on Monday, November 3rd. JPMorgan Chase & Co. lifted their price objective on Roku from $105.00 to $115.00 and gave the stock an “overweight” rating in a research note on Friday, October 31st. Finally, Needham & Company LLC reissued a “buy” rating and set a $110.00 target price on shares of Roku in a research report on Wednesday, October 1st. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $110.18.

Roku Trading Down 5.6%

The company’s 50-day moving average is $99.51 and its two-hundred day moving average is $88.00. The firm has a market cap of $14.78 billion, a P/E ratio of -500.02 and a beta of 2.18.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.09. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The firm had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.21 billion. During the same period last year, the firm posted ($0.06) EPS. The business’s revenue was up 14.0% compared to the same quarter last year. Roku has set its Q4 2025 guidance at EPS. Research analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Envestnet Asset Management Inc. grew its holdings in shares of Roku by 12.8% during the first quarter. Envestnet Asset Management Inc. now owns 175,250 shares of the company’s stock worth $12,345,000 after purchasing an additional 19,889 shares in the last quarter. Stratos Wealth Partners LTD. bought a new position in shares of Roku during the 1st quarter valued at $306,000. Cerity Partners LLC raised its position in Roku by 17.7% in the 1st quarter. Cerity Partners LLC now owns 31,400 shares of the company’s stock worth $2,212,000 after purchasing an additional 4,721 shares during the period. Xponance Inc. lifted its stake in Roku by 4.0% in the first quarter. Xponance Inc. now owns 14,597 shares of the company’s stock worth $1,028,000 after purchasing an additional 561 shares during the last quarter. Finally, CWM LLC lifted its stake in Roku by 113.5% in the first quarter. CWM LLC now owns 13,309 shares of the company’s stock worth $937,000 after purchasing an additional 7,074 shares during the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.